U.S. Energy Dept. conditionally backs Cape Wind project

The U.S. Department of Energy's conditional backing of the Cape Wind project is "another substantial vote of confidence for a project that is piling them up these days," Energy Center Director Matthew Morrissey said.

The U.S. Department of Energy's conditional backing of the Cape Wind project is "another substantial vote of confidence for a project that is piling them up these days," Energy Center Director Matthew Morrissey said.

The DOE announced Tuesday it has conditionally committed to a $150 million loan guarantee for Cape Wind's proposed energy project off the coast of Cape Cod.

Morrissey said the federal loan will only help ensure New Bedford's future as an offshore wind hub.

"This announcement conveys to the mature global offshore wind market that the US continues to put its money where its mouth is," he said. "This loan guarantee helps us make the case that New Bedford is a place for the offshore wind supply chain to set up over time."

Peter Davidson, executive director of the Loan Programs Office for DOE, wrote on his blog that the office hopes to replicate the success of the onshore wind industry with this loan to Cape Wind.

"The lessons that can be learned from this project can help catalyze similar projects in other areas of the U.S. with excellent offshore wind resources," he wrote.

DOE officials would not elaborate on what the conditions are for the loan guarantee to become final.

Cape Wind, which plans to put 130 turbines in Nantucket Sound, has already secured more than $1 billion in funding, but spokesman Mark Rodgers says the project still needs more.

He would not say how much financing is needed, but said the federal loan symbolizes "a great boost for Cape Wind and also the offshore wind industry in the US."

Rodgers said the project expects to secure financing by the end of the year, and could be ready "as early as January" to start construction.

That's something New Bedford officials like to hear as the state moves closer to its December deadline for completing the South Terminal turbine staging facility.